The World Bank has priced an A$300 million 5-year fixed rate Kangaroo green bond, the first of its kind in the Australian domestic market.
According to World Bank, the new bond will support its lending to eligible development programs that are designed to address the challenges of climate change.
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Through this launch, the World Bank has now issued a total of US$ 5.6 billion equivalent in green bonds since its inaugural green bond in 2008.
World Bank said that UniSuper was the cornerstone investor to put $100 million in the Kangaroo Green Bond.
Additionally, the other investors in Australia will include Aberdeen Asset Management, AMP Capital, Australian Ethical Investment, Colonial First State Global Asset Management, Local Government Super and QBE Insurance Group.
Doris Herrera-Pol, director and global head of capital markets at the World Bank, said: "This inaugural green benchmark in the Australian market expands the green bond institutional investor base to Australia.
"It is a further step in building the green bond market that mobilizes private sector financing for climate-smart activities to help finance the transition to a low-carbon economy, while helping countries adapt to the effects of climate change and build resilience."
RBC Capital Markets and Westpac Institutional Bank are the joint-lead managers for this transaction.
